Organizational culture can be shaped through various mechanisms including leadership behavior, socialization of new members, stories and symbols, and the use of language. A strong, clearly defined culture can help drive organizational commitment but may also hinder change efforts. As technology and the external environment change, organizational culture must evolve to ensure ongoing survival and adaptation. Leaders play a key role in managing and shaping organizational culture through what they emphasize, reward, and model for other members.

1. • Structure of an organizations is about:
– Pattern of
• Roles
– work specialization? Departmentalization?
• Authority
– chain of command? span of control?
• Communication
– centralization? formalization?
Organizational Design

2. • Organic
– A structure that is flat, uses, cross-hierarchical & cross
functional teams, has low formalization, possesses a
comprehensive information network, and relies on
participative decision making
• Mechanistic
– A structure characterized by extensive
departmentalization, high formalization, a limited
information network, and centralization
Categories of Organizational Structure

3. • Not as formally defined
– Tall and Flat
– Formal and Informal
– Large and Small
– Public and Private
– Top down and Bottom up
Other Categories

4. • Functional
– Design follows the functions –
Marketing, R&D, Finance, Operations, etc…
• Divisional
– Design follows the products as separate units
• Geographic
– Design is comprehensive within an area
• Network
– Design provides for attachments and alliances
• Matrix
– Design uses a grid where power and authority are shared as
needed
With at least 5 shapes

5. • Strategy
• Environment
• Technology
• Size
• National Culture
• The People
• Shared Values
7 Factors in shaping Org Design

6. • A Formal structure
– It is shown on the organizational chart
– You can see the authority and who is suppose to
report to whom
• An Informal structure
– It is known to those who have been around
– Operates in the informal politics of the organization
– Can create opportunities for efficiency because it can
eliminate bureaucratic red tape
Within every organization there is

7. Next ……
– 1. Who is Edgar Schein?
– 2. Why should we care?

9. Schein
• Why should you care about Organizational Culture?
– norms, values, behavior patterns, rituals, traditions.
– Implication of:
• structural stability
• patterning and integration.
– Culture is the accumulated shared learning from shared
history.
• 2 problems all groups must deal with:
– 1. survival, growth, and adaptation in environment
– 2. internal integration that permits functioning and adapting.

10. • What is “external adaptation”?
• 1) Mission and Strategy. a shared understanding
• 2) Goals. consensus on goals, derived from mission.
• 3) Means. means to be used toward goals, --organization structure, --labor, -- rewards
---authority system.
• 4) Measurement. criteria to be used in measuring how well the group is doing --
goals
• 5) Correction. remedial or repair strategies
• What is “internal integration”?
• Language
• Norms
• Boundaries
• Humor
• Celebrations

11. • Air filters
• Guitar strings
• Medical implants
• Industrial sealants
• Signal transmission
• Industrial filtration
• Window screens
• Breathable rain ware
• Coaxial cable
• Sewing thread
• Organic Waste Treatment
• Gaskets
• Automotive vents
• Fuel Cell Components
What do the following have in common?

12. W. L. Gore & Associates
• 1.58 Billion in annual revenues
• 6,300 employees
• Privately owned

13. W. L. Gore & Associates
• 1958 – Bill Gore left DuPont
– Communication happens in the car pool
– In crisis companies form task forces and throw out
the rules
• Non descript campus
• Small groups – 150 to 200
• No bosses

14. • http://www.fastcompany.com/magazine/89/open_gore.html
• Or download the posted version
Read

15. Org Culture Issues
• Three important issues in an organization’s
culture:
– Ethics
– Diversity of employees
– Leadership behavior
• How does all this fit together?
– Managers and leaders must use good leadership
practices to be sure to introduce, develop, reward,
and “cement” ethical practices and positive ways of
working with diversity into the organization culture.

16. What does culture actually do?
• Glue
• Sense of identity
• Generates commitment
• Helps people to make sense of what happens
• Provides the “control” function – (norms)

17. Definition of Organizational Culture
• A system of shared meaning held by members
that distinguishes the organization from other
organizations.
– Robbins
• Research has shown the system of shared
meaning is actually a set seven primary
characteristics ---

18. Seven Characteristics of the Set
• The degree to which ……
1. Innovation and risk taking or be safe
2. Attention to detail or generalities
3. Focus is on outcomes or processes
4. People orientation or doesn’t care
5. Team orientation or individuality
6. Aggressiveness or easygoing
7. Activities emphasize stability or change

19. Foundations of Org Culture
• Organizational Culture
– The shared, emotionally charged beliefs, values, and
norms that bind people together and help them make
sense of the systems within an organization.
• Form (how they show up)
– Consists of the observable ways that members of a
culture express idea
• The beliefs, values and norms tell people:
– “What is to be done.”
– “How it is to be done.”

23. Language, Metaphors and Symbols
• Language
– Certain words, phrases, speeches, etc.
• Metaphors
– The use of familiar elements or objects to make
behavior or other unfamiliar processes or actions
comprehensible.
• Special terminology  Abbreviations
• Jargon or slang  Gestures
• Symbols
– A picture, a shape, or a particular object.

24. Stories and Sagas
• Stories and Sagas
– Graphically and quickly communicate emotionally
charged beliefs to organization members.
– Have important meaning for all employees, but
especially for new employees.
• Organizational stories tell new members:
– The real mission of the organization
– How it operates.
– What behavior is acceptable.
– How individuals can fit into the organization.

25. Stories and Sagas (cont’d)
• Stories
– Serve as symbols of the organization’s
entrepreneurial orientation and promote values
that unify employees from diverse organizational
units.
• Sagas
– Historical accounts describing the unique
accomplishments of a group and its leaders or
heroes.

26. Getting to culture
• Culture begins with founders
• Maintained by selection processes
• Actions of Top Management (what we celebrate)
• Socialization
– Stories
– Rituals
– Symbols
– Language

27. Transmission of culture
• Socialization
• Stories
• Symbols
• Jargon and language
• Rites and ceremonies
• Statements of principles

28. • Some companies post –
• Some companies pass out laminated cards –
• What is the key point?

29. Aveda Beliefs
• We believe in treating ourselves, each other, and the planet with care and respect.
• We believe social responsibility is our responsibility.
• We believe ecological and profit goals are mutually achievable.
• We believe our authenticity and experience are our points of difference.
• We believe in inspiring and educating people to integrate wellness and beauty in
their lives.
• We believe in the power of oneness: from our global image to a focused network.
• We believe learning never ends.
• We believe in encouraging innovation and empowered decision-making.
• We believe our actions, products, and services should always embody excellence.
• We believe personal and organizational balance is the key to sustainable success.
• We believe true leadership is delivered with passion and by example.

30. Strong vs Weak Cultures
• Strong Culture
• Core values intensely held and widely shared
• Weak Culture
• Vagueness, ambiguity, inconsistencies
• Which culture has the greatest impact?

31. Impact of Culture on Organizations
• Strong Cultures
– Positive
• Shared values and beliefs create a setting in which
people are committed to one another and share an
overriding sense of mission.
– Negative
• A strong culture can cause a resistance to change by
reinforcing a singular view of the organization and the
environment.

32. Culture good! Culture bad!
• +s of culture
• Organizational commitment
• Consistency of employee behavior
• Reduces ambiguity – what’s important
• -s of culture
• Not everyone fits (sometimes those are good people)
• In change hard to respond

33. The paradox of Diversity
• Culture moves us in the same direction
– Because we are part way there (we are the same)
• Organizations embrace diversity because
– There is value added by examination from
different perspectives
• Culture / diversity ????

34. Organizational Culture and Change
• In order to survive, organizations and their
cultures must continuously evolve and change.
– Conditions prompting change include:
• Economic crises
• Changes in laws or regulations
• Social developments
• Global competition
• Demographic trends
• Explosive technological changes
– Cultures change when an organization discovers,
invents or develops solutions to problems it faces.

35. • Change is hard
• This is what it looks like theoretically:
– Kurt Lewin (look him up in Wikipedia)
• Model of change “Force Field Analysis”
• Opposing forces shape an organization
– Helping Forces – those driving movement forward
– Hindering Forces – those blocking movement
• To Change you must either increase the Helping Forces
or decrease the Hindering Forces
Here is the problem --

36. • Lewin theorized a three step process
– Unfreeze
– Transition
– Refreeze
• Today we think of most change efforts as
being ongoing – you don’t refreeze because
tomorrow you will have to make more
changes

37. Changing Organizational Culture
• Top leaders can set the tone for a culture and
for culture change.
– Leaders who strive for high-quality products and
services understand that they must:
• Involve the keepers and holders of the culture.
• Build on what all organizational members share.
• Teach new members how to behave.

38. • What is a dominant culture?
• What is a subculture?
• What is a counterculture?

39. • Socialization: systematic process of bringing new
members into their cultures
– The Monkeys from “How Company Policy Begins”
• Seven steps
• Careful selection of entry-level candidates
• Experiences that cause new members to question prior
» Behavior
» Belief
» Values
• Training in organization’s core disciplines
• Meticulous attention to rewards and control systems
• Careful adherence to organization’s core values
• Reinforcing folklore
• Consistent role models

40. Where does “Technology” fit with
“Culture”?
• Benefits
– A culture aligned to maximize technology will
embrace information flows and communication such
that it brings organizational layers closer together.
– Managers can provide data employees need and
employees can quickly resolve concerns with
management.
• Downside
– We can “overdo it” with information technology.
– People are buried in e-mail messages
– Personal use of technology must be managed.

41. Managing organizational culture
• It’s you ……..
» What you pay attention to
» How you react to critical incidences
» How you allocate scarce resources
» What you model, teach, and coach
» What you reward and give status to
» How you recruit, select, promote, and excommunicate

42. Managing organizational culture
• It’s the place
» Organizational design and structure
» Systems and procedures
» Design of physical space and buildings